Contract Question

Putputt

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I was looking over an agency agreement and came across this:

[AGENCY] may deduct any expenses [AGENCY] incurs on Client’s behalf, including, but not limited to, postage, messengers, couriers, copying and manuscript retyping charges from any payments [AGENCY] receives hereunder, and in such event [AGENCY] shall provide Client with an itemized list of all such expenses incurred.

I'm somewhat surprised as I have seen other agency agreements and they've alwas said the agenc would be responsible for the expenses. In any case, I was wondering if it would be reasonable to ask if the agency could inform the client before the expenses incurred reach a certain amount per year. If so, what would be a reasonable amount?
 

BethKLewis

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I just checked my agency agreement and there isn't a clause like this. Mine only goes as far as mentioning that the agency can reimburse themselves for expenses such as buying books for submission to foreign publishers. It does mention other 'exceptional' expenses which would only be reimbursed with my agreement. Doesn't mention postage/printing etc.

Can you ask for that clause to be reworded or removed? I've never felt that agencies should charge the author for postage of their MS. Otherwise, what does their 15% cover?

I suppose it all depends on the agency and I'm sure it's standard to include a clause like that.

Maybe you could ask that the agency inform you when the expenses reach $100/£100. That way you can monitor what they're doing a little closer. If they get to $100 within a week then you know something is wrong. If they get to $100 within 6 months or a year, then it's more reasonable.
 

Cathy C

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I think what you're seeing is a left-over of a different time from an older agency. It's the "retyping" that gives it away. It used to be that's the only way you could send out multiple manuscripts because copy machines didn't exist (or existed only through roll paper) and couriers were required to get a manuscript from place to place. You might just ask your agent whether the clause is used for anything other than foreign submissions and see if it can be amended to remove the non-applicable language.
 

Quickbread

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My agency agreement includes a clause similar to this. Even though it's less common these days for agencies to incur such expenses, I guess there could still be circumstances that arise, such as overnight or international shipping, bank wire transfers, etc. I like that the clause above stipulates that the writer will be notified of any expenses. In my contract, I asked them to add notification if charges exceeded $200.
 

Jamesaritchie

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Agents have every right to have you cover basic expenses that are out of the ordinary, such as the need to make several copies of your novel.
 

Jamesaritchie

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Can you ask for that clause to be reworded or removed? I've never felt that agencies should charge the author for postage of their MS. Otherwise, what does their 15% cover?


.

There is no fifteen percent unless or until the agent sells the book. Most agents do not sell all the books they represent, and every penny spent on those books is a loss.

I really don't worry about an agent charging me for out of the ordinary expenses. Good agents do not take advantage of this, and cover routine expenses themselves. When they do charge for something out of the ordinary, which is very, very rare, and always for good reason and my benefit, I can write it off as a business expense.
 

Fuchsia Groan

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My agency agreement includes a clause similar to this. Even though it's less common these days for agencies to incur such expenses, I guess there could still be circumstances that arise, such as overnight or international shipping, bank wire transfers, etc. I like that the clause above stipulates that the writer will be notified of any expenses. In my contract, I asked them to add notification if charges exceeded $200.

Same here, with $200 already included as the notification amount. So far I haven't been charged for anything.
 

Drachen Jager

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My first agent had that, with the $200 clause.

Current agency did not have that clause in the contract.

I don't think it's a big deal as it comes out of royalties. If they don't sell your novel, you don't pay. Aside from which, I've never actually heard of an agency charging that fee. Everything is done by e-mail these days.
 

Axiomae

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Ouch! I'd be wary just like you! That could easily blow out - but hopefully as PPs have said it's a relic and just in case of exceptional circumstances.
 

Putputt

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Thank you everyone for all the answers! I'll probably ask them to add a clause about notifying me once it reaches $200. Thank you again!

(Oh, and Cathy C, you're probably right about it being a leftover from a really old contract, lol. I never even considered that possibility, although now it seems so obvious aas the agency was established um...80-ish years ago?)
 

Jennifer_Laughran

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I've never felt that agencies should charge the author for postage of their MS. Otherwise, what does their 15% cover?

What our 15% commission covers: The agency takes some agreed-upon portion of that, with which they pay for normal whatever business expenses like phones, electricity, rent, stationery, website maintenance or whatever - the rest goes to the agent, as their paycheck.

In this day and age, most/all manuscripts are sent via email and nothing needs to be typed/photocopied/couriered. (For perspective: I've been asked by one (1) editor in the past 8 years to send something via snail mail... and that was a totally bizarre situation. It has never happened again.)

We don't charge authors for things like mailing their royalty statements or contracts to them, or the bookkeepers who arrange all the 1099s, or like, the ink to print their checks out with, because all that is part of the normal course of doing business.

We DO charge authors for anything that *they specifically request/demand* that is OUT of the normal course of doing business. So like, let's say I am getting set to send out submissions, and YOU say "nope, I'd rather 10 copies of this be printed out and sent via courier" -- we'd charge you for that. Or if you need your check wired in some special way that costs $30, we'd charge you for that. (This is a very rare thing as you can imagine... and again, it's only upon the authors request, so you'd know!)

Pretty much the only thing we ever actually have to charge authors for is in the instances where we have to send a few hard copies of books to our overseas publishing partners for translation, but then we strive to keep costs as low as possible, and we always tell the authors what is happening and when so they won't be surprised. (And since that means that a book is being translated and they are getting paid for it, that is a good thing.)

I would ask the agent about the clause and let them reassure you, but in my experience, something like it is in a great many/most agency agreements, is non-negotiable, and unless they are shady criminals, they will never charge you for anything without explaining it to you and making sure you understand.
 

Putputt

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Thank you for the great advice, Jennifer!